Subject Property Not ANSI Compliant

[Zoe]

Find what out? What's happening with the loan? The home is owned by a company and their employees can rent a room for a week at a time so they are the typical tenant, we have info on the rental rates.

That's good. You need to rely heavily on the income cap approach. Do you have all the income and expense statements and rent roll yet?

 

[Zoe]

Get three years income and expense statements and rent rolls from owner. Tell owner make sure you give it to the bank. They send it to me.

That is crucial. You want the owner sending it directly to the lender. And your client sending it to you.

 

[Zer000]

That's good. You need to rely heavily on the income cap approach. Do you have all the income and expense statements and rent roll yet?

Just the rent and utility payment cause I was not initially planning on doing an income approach. Boarding room style rents are not typical in my area and even in some areas they are not even permitted, which I am still waiting for the township to let me know if this is even permitted. So is the income approach even appropriate given this style of rental set up is not typical?

 

[Zoe]

Your killing me smalls:

 

[Zoe]

Just the rent and utility payment cause I was not initially planning on doing an income approach. Boarding room style rents are not typical in my area and even in some areas they are not even permitted, which I am still waiting for the township to let me know if this is even permitted. So is the income approach even appropriate given this style of rental set up is not typical?

You are on the right track.

 

[Zer000]

You are on the right track.

Sorry this report is just kicking my *** and twisting my brain around. I rarely have to do income approach let alone one like this so I am just trying figure out how to get this report finished.

 

[Zoe]

Sorry this report is just kicking my *** and twisting my brain around. I rarely have to do income approach let alone one like this so I am just trying figure out how to get this report finished.

You'll me okay. Get the income and expense statements on the subject. Get the rental terms and who pays it. 2 years would be good on income and expense statements. Need the terms on the rents for typical tenant.

 

[Zoe]

There is nothing wrong with bowing out. Your client will thank you if you can't handle it. Just say this is something I don't feel competent to do. They will be fine. They are not competent for sure. .

 

[shrubberyvaluation]

So I am appraising a property for a conventional refi, it is a detached SFR built in the late 1800's in an older borough. The problem is that all the ceilings on both floors are below 7' in height, some are so low on the second floor that the top of my head was touching the ceiling. Now according to ANSI this would technically be a house with 0 GLA, so I am struggling with how to approach this. As of right now after some discussion with others is to use the GXX001 code and proceed like a normal report. Does this seem like an appropriate use of this code? Typically in my area the normal non ANSI compliant areas are 3rd floor attics with sloped ceilings which are usually less than 500 square feet, the subject property is 1500+ square feet. I'm not really sure how else to proceed (the lender has told me to proceed) because the cost to cure would be insane and realtors are terrible in my area in regards to ANSI so finding comps with low ceilings are a guessing game with MLS photos, and trying to extract a market reaction to low ceilings seems impossible. Just wanted to see what you guys think, thanks!

I'd use the code, try to find houses with similar low ceilings and adjust if not for functional utility if necessary.

 

[Zoe]

I'd use the code, try to find houses with similar low ceilings and adjust if not for functional utility if necessary.

Yeah but op has indicated this is income producing property. I could be totally off base. But it seems this property is income producing from what little I have read.